The State Bank of Viet Nam has submitted a credit package worth of VND50 trillion (US$2.3 billion) to support the local commercial housing market during its recovery period.

The announcement about the package being submitted to the Government was made by an official of the Ministry of Construction last week at a seminar in HCM City.


Loans extended from the package will carry an interest rate of 7 per cent per year for the first 10 years, Deputy Minister of Construction Nguyen Tran Nam said at a seminar on property trading-Opportunities and Challenges in the Recovery of the Market-organised by the Viet Nam Real Estate Association and the National Economic University.

The loans can get an extension of five or 10 years, with a suitable interest rate that is adjusted according to existing market situation, he added.

Nam said the local property market has started recovering because the number of successful transactions on the property market has risen strongly and the property inventory has been halved, reported BizLive website.

Meanwhile, lending for the property sector at banks rose sharply to VND300 trillion ($14.1 billion), doubling the total value of loans seen at the end of 2012.

At present, 15 banks have been permitted to extend loans from the VND30 trillion package for social housing projects.

Tran Tho Dat, the head of the National Economic University and also the head of the seminar's organisation board, said the local property market is expected to see some changes in policies this year, which will encourage stable and sustainable development, together with sustainable development of the financial market and the local macro economy, reported Voice of Viet Nam.